TMI Blog2017 (3) TMI 814X X X X Extracts X X X X X X X X Extracts X X X X ..... by Ld. CIT(A) and also relied upon by the Ld. Counsel before us, wherein it has been held that date of approval as envisaged in section 80IB(10)((a)(iii) would be the date when assessee would be entitled to commence the construction of the project as per local law applicable. Thus, in view of the aforesaid discussion and facts of the case, the decision taken by the Ld. CIT(A) is hereby upheld. - Decided in favour of assessee - I.T.A. No.2886/Mum/2015 - - - Dated:- 6-2-2017 - SHRI JOGINDER SINGH (JUDICIAL MEMBER) AND SHRI ASHWANI TANEJA (ACCOUNTANT MEMBER) For The Appellant : Shri Suman Kumar For The Respondent : Shri K Gopal / Ms. Neha Paranjape, Shri Paras Savla ORDER Per ASHWANI TANEJA, AM: This appeal has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pal Corporation sanctioned / approved the project on 28-03-2006. As per provisions of section 80IB(10)(a)(iii), the project was to be completed within a period of 5 years from the end of the financial year in which housing project is approved by the local authority. Thus, as per AO, the housing project should have been completed within 5 years from 31-03-2006 i.e. upto 31-03-2011. As per the AO, the occupation certificate of the entire project was obtained on 30th March, 2012. Thus, as per AO, this project was not completed within the time, therefore, assessee was not eligible for benefit of deduction u/s 80IB(10) and, thus, the deduction was denied to the assessee by the AO in the assessment order passed by him. 4. During the appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -03- 2006 as stated above. In this regard, it is submitted by assessee that the aforesaid permission specifies the various conditions to be fulfilled and only after that the assessee could carry on such construction after obtaining the sanction for development certificate. The assessee has produced a letter dated 23-06-2011 from Executive Engineer, Town Planning Department, Thane Municipal Corporation, Thane (TMC) which clarifies that the plans submitted by the developer can be said to be approved only when the developer receives the development permission as well as commencement certificate. It is also clarified that as per regulation 3 Part II of Development Contract Regulation, 1994, unless development permission and commencement certifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 2009-10 i.e. in the immediately preceding previous year, the assessee was granted the benefit of deduction u/s.80113(10) after scrutiny. In view of the aforesaid facts, and relying on the decision of Hon'ble ITAT, Mumbai , I am of the considered opinion that assessee's project was approved on 05-10-2006. Accordingly, the assessee is eligible for deduction under section 801B(10) of the Act. Assessing Officer is therefore, directed to allow deduction u/s.801B(10) of the Act of ₹ 67,00,857/-. 5. During the course of hearing before us, it was stated at the outset by Ld. Counsel of the assessee that this issue is now covered in favour of the assessee in view of judgments of the Tribunal which had been relied upon by the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... approval / sanction for actual construction of project. 4. 01.04.2006 The Appellant made application before the Collector for seeking permission to convert its agriculture land into non agriculture land in order to fulfill the conditions laid in the above permission letter. 5. 05.08.2006 The Collector has granted permission for using the said land for non-agricultural purposes. 6. 05.10.2006 After fulfilling all the required conditions Appellant obtained Commencement Certificate that is actual approval for construction of the said project. 7. 23. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee subject to various conditions and approached other authorities from whom applicable permission / approval was required. After carrying out all the requisite conditions and after obtaining requisite approvals / permissions from other concerned authorities, assessee again approached Thane Municipal Corporation for allowing the assessee to commence the construction of the project. Thereafter, after examining the satisfactory compliance of all the conditions and approval letters granted by other concerned authorities, finally Thane Municipal Corporation granted commencement certificate dated 05-10-12006 giving permission to the assessee to start the construction of the project. It is noted by us that it was clarified by Thane Municipal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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